South African mogul Adrian Gore’s Discovery suffers 10-percent decline in earnings

Discovery Limited, a Sandton-based insurance giant led by South African billionaire businessman Adrian Gore, saw its earnings fall 11 percent at the end of the first six months of its 2023 fiscal year, which ended on Dec. 30, 2022.

According to the group’s recently published financial statement, its headline earnings – the primary profit measure in South Africa – fell by 11 percent from R3.3 billion ($181 million) to R2.94 billion ($161.3 million) due to an increase in operating expenses.

The drop in headline earnings comes despite a 20-percent increase in normalized operating profits from R3.7 billion ($203 million) to R5.9 billion ($323.8 million) despite facing macroeconomic challenges in all of its locations, including South Africa, and feeling the effects of the COVID-19 pandemic.

Despite a double-digit decline in headline earnings, the group’s total assets increased from R271.2 billion ($14.8 billion) to R284.95 billion ($15.6 billion) during the period under review, while total equity rose from R53.55 billion ($2.93 billion) to R57.18 billion ($3.13 billion).

Discovery, which was founded as a medical insurer in 1992, is one of South Africa’s largest and most diverse global financial services firms, specializing in long- and short-term insurance, asset management, savings, investment, and employee benefits.

Gore, who founded the financial services firm and ranks as one of South Africa’s richest businessmen, owns a sizable 7.48-percent stake in the Sandton-based insurance giant.

As of press time on Feb. 23, shares in the group were worth R146.92 ($8.058), 3.22-percent more than their opening price on the Johannesburg Stock Exchange, giving the company a R95.8-billion ($5.25 billion) valuation.

At the present price level, the market value of Gore’s stake in Discovery is worth R7.16 billion ($392.3 million).